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When can I arbitrate?

On Behalf of | Aug 6, 2021 | Commercial Litigation |

Smart business owners know why avoiding litigation is usually the best option for all parties involved in a dispute. Commercial litigation can take months or years in a court of law, and it can be very expensive. Beyond this, engaging in litigation often ruins business relationships.

It is for this reason that alternative dispute resolution is very popular. One means of alternative dispute resolution is arbitration. According to FindLaw, you can arbitrate almost anything you would like for any reason, so long as the other party agrees to arbitrate as well.

Getting agreement

Provided that the dispute is not criminal in nature, you can choose to arbitrate rather than litigate nearly anything. However, if the other party involved in the dispute wishes to litigate the dispute, this trumps your desire to arbitrate. It is always the right of either party to take a commercial dispute to a court of law.

Is it rare to get an agreement?

Not at all. In fact, people engage in arbitration agreements on a daily basis more often than they may think. For instance, many online shoppers agree to arbitrate disputes as part of the terms of service for purchasing goods or services from a seller. It is also very common for travel websites to include a form of alternative dispute resolution in the fine print of the agreement.

Given that arbitration is most likely cheaper and faster as compared to traditional litigation, in a B2B context you will likely not encounter much resistance if you suggest arbitrating. However, if the other party wishes to litigate, you cannot force them to arbitrate.